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Skip NavigationMarketsBusinessInvestingTechPoliticsVideoWatchlistInvesting ClubPROLivestreamMenuReddit has more room to run as its platform for posts written by humans becomes a bigger draw to netizens amid the boom in artificial intelligence, according to Needham. The investment firm has a buy rating on the social media name. It also has a $300 price target on shares, implying 50% upside from Thursday’s close. “RDDT’s core asset becomes more valuable over time, because it is 100% human dialog and information, at scale, which is a competitive advantage in an environment of proliferating Algorithms,” analyst Laura Martin said Friday in a note to clients. “RDDT offers a human layer of authentication and advice, which many consumers require before they follow purchase or life advice from an LLM or algorithm.” The use of generative-AI tools such as ChatGPT has exploded over the past few years. Roughly half of U.S. adults report using AI chatbots, marking a significant increase from the number of individuals who had reported using those tools in 2024, according to a recent report from Pew Research Center. To boot, about one-in-four of survey participants now say they use gen-AI tools on a daily basis, per the same report. But as more people turn to AI bots, human-produced content could become more difficult to locate, making Reddit a valuable source for authentic, non-AI insights. That, in turn, should drive more value to the firm’s shares, per Martin. Needham’s call falls in line with consensus on the Street. Of the 29 analysts covering Reddit, 19 have a buy or strong buy on the stock, LSEG data shows. Shares of Reddit have risen 43% over the past three months, vastly outperforming the overall market.Read More